Question

Discuss the factors to consider if Organization decides to do business internationally.

Answer 1

Some factors to be concerned if an organization decides to do business internationally are :

• Economy(business side) : Financial decision have to be taken beforehand after a comprehensive market research and analysis of the other country. Market trends tend to be a deciding factor in economic feasibility.
• Political scenario : The situation of the foreign politics could also be a big factor when a business is thinking about an overseas expansion or opening a new unit. Employment laws, immigration policies, stability of government and hence, their policies which could determine access to capital and such is crucial.
• Cultural scenario : The variation in culture in the international market could be a factor which adds to the business being successful. Local foreign markets could be aggressive or defensive , individualistic or collectivistic and all these cases have to be studied beforehand.
• Regulations in foreign country : International law and business regulations need to be adhered to when operating a business in a foreign land. Otherwise, the cost of being caught in the crosshairs of legal battles could prove to be high.
• Environmental factor : Climate and weather could also prove to be somewhat of an important factor for certain industries. e.g. A woolen apparel business is less likely to thrive in a hot country.